Passage of Two Key Transportation Measures in California is Expected to Provide Significant Funds to Reduce Congestion
Santa Ana, Calif. – Iteris, Inc. (AMEX: ITI), a leader in the traffic management market that focuses on the application and development of advanced technologies, today announced the passage of two key measures in California, Measure R in Los Angeles County and Proposition 1A statewide, are expected to add significant funds dedicated to traffic and transportation improvements.
Measure R will finance new transportation projects, as well as provide funding for many projects already in place through the implementation of a half-cent sales tax for Los Angeles County. The measure was officially passed on December 2, 2008 and is expected to become law on January 2, 2009, with the tax taking effect in July 2009.
Measure R is projected to generate $8.5 billon over the next ten years and a total of $40 billion over 30 years for congestion relief projects — funding everything from new rail and/or bus rapid transit projects; commuter rail improvements; Metro Rail system improvements; highway projects; and local city sponsored transportation improvements. In addition, fifteen percent of revenues will be returned to local jurisdictions for traffic improvements, signal timing, bus service and transit projects.
This broad reaching measure is expected to positively impact several of Iteris’ ongoing transportation systems projects, such as:
- “Subway to the Sea”: Iteris is currently part of the team preparing the Alternatives Analysis that will recommend the alignment and station locations. With the funding allotted through Measure R, this project may now be advanced to the next step which is the Environmental Impact review and Preliminary Engineering.
- Exposition Light Rail: Iteris is providing traffic engineering services on the design/build team constructing Phase 1 of the Exposition Light Rail line from Downtown Los Angeles to Culver City. Measure R could provide the additional capital needed to initiate Phase 2, which will extend the line from Culver City to Santa Monica. Iteris is currently part of the team preparing the Environmental Impact review of the Phase 2 project.
- Metro Orange Line Extension: Iteris is completing preliminary engineering for the Metro Orange Line Extension in the San Fernando Valley. Measure R may influence the board’s decision to implement the project and proceed with the design/build.
- I-710 South and 710 Tunnel Gap Closure Projects: Iteris is performing traffic analysis and truck forecasting for these projects that will upgrade the freeway and improve truck and traffic flows between the Ports of Los Angeles and Long Beach and the SR-60 freeway, as well as complete the I-710 freeway with a tunnel below South Pasadena and Pasadena.
- Burlington Northern Santa Fe Grade Separations: Iteris conducted the transportation studies in the Environmental Impact report for the construction of rail and roadway grade separations in the Gateway Cities area.
The passage of Proposition 1A allows $9.95 billion in bonds to be issued to establish a clean, efficient high-speed train service linking Southern California, the Sacramento/San Joaquin Valley, and the San Francisco Bay Area — easing congestion on California highways and airports.
For over a year, Iteris has been part of a large engineering team completing the environmental impact report and environmental impact statement for the Los Angeles to Irvine leg of the High Speed Rail project. With the approval of the funding measure, this project is expected to actively continue into 2009.
Iteris is also part of a team which was selected to complete the environmental impact report and environmental impact statement for the Los Angeles to San Diego (via the Inland Empire) route of the system. With the passage of the measure, it is expected that work on this leg of the system to be authorized in 2009.
“I am impressed that despite the economic challenges faced by California, voters have remained committed to improving the quality of their transportation systems”, said Abbas Mohaddes, Iteris’ president and chief executive officer. “I believe that the funding provided by Measure R and the high speed rail bonds will create additional opportunities for Iteris to provide traffic management and transit product and services to Los Angeles County and the state of California. We are looking forward to working with both local and state agencies with the ultimate goal of reducing traffic congestion while improving commutes and the quality of life for all travelers.”
About Iteris, Inc.
Iteris, Inc. is a leader in the traffic management market focused on the development and application of advanced technologies that reduce traffic congestion, minimize the environmental impact of traffic congestion and improve the safety of surface transportation systems. Combining outdoor image processing, traffic engineering and information technology, Iteris offers a broad range of Intelligent Transportation Systems and driver safety solutions to customers worldwide. Iteris is headquartered in Santa Ana, California with offices throughout the United States, Europe, and Asia. Investors are encouraged to contact us at 888-329-4483, or at www.iteris.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:This release may contain forward-looking statements, which speak only as of the date hereof and are based upon our current expectations and the information available to us at this time. Words such as "believes," "anticipates," "expects," "intends," "plans," "seeks," "estimates," "may," "will," “can” and variations of these words or similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the projected revenues and benefits of both Measure R and Proposition 1A as well as Iteris’ ability to compete for, win and successfully complete transportation projects related to these funding sources.
Important factors that may cause such a difference include, but are not limited to budget constraints and changing governmental priorities; the difficulties in raising funds for both Measure R and Proposition 1A; Iteris’ ability to compete for, win and successfully complete transportation projects related to these funding sources; the potential unforeseen impact of product offerings from competitors and other competitive or governmental pressures; and the general economic and political conditions in the U.S. and worldwide as well as specifically in California and the markets we address. Further information on Iteris, Inc., including additional risk factors that may affect our forward looking statements, is contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and our other SEC filings that are available through the SEC's website (www.sec.gov).
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Iteris Investor Relations
Brett Maas, 646-536-7331
Iteris Trade Relations
Kelly S. May, 949-270-9668